The invention discloses a distribution line type selection method based on lowest composite cost. The distribution line type selection method includes steps: (1) giving load a peak value Pmax; (2) determining the voltage grade U according to power distribution network correlation techniques; (3) selecting a line series of the voltage grade according to the guide rule of the power distribution network correlation techniques, namely S1, S2...Sn; (4) calculating cost of the selected line series, namely CS1, CS2...CS3, one by one; (5) selecting a line type with the lowest composite cost; and (6) performing allowable voltage loss verification for the selected line and leading the line to be the optimum if the selected line meets requirements. The distribution line type selection method comprehensively considers investment cost, operation maintenance cost, electric energy loss cost, outage loss cost, retired disposal cost and environmental cost of line devices, solves problem that the existing line type selection method cannot reflect whole life cycle cost of the line devices, customer cost and environmental cost, and can achieve lowest whole society composite cost in the line life cycle.